Green Building Tax Credits

Residential and commercial buildings account for nearly
one-third of total U.S. energy intake. Yet the impact that
buildings have on the environment goes far beyond their simple
energy usage. Factors such as site selection, the construction
process, building materials and air emissions from homes and
commercial buildings all affect the environment in unique ways.

“Green,” or “high-performance,” building takes energy
efficiency to a new level. Using a comprehensive approach, green
building creates environmentally sustainable, healthy and
productive, and economical buildings through new construction,
major renovations or additions, or minor upgrading.
Practitioners use wide-ranging techniques such as on-site
renewable energy generation, energy efficiency through
innovative wastewater technologies, or siting near public
transit in order to minimize building occupants’ impact on the
surrounding environment. These techniques have been shown to
reduce building energy costs by 20-50% and water usage by at
least 50% outdoors and 30% indoors.[i]

The U.S. Green Building Council (USGBC) has set national
standards for green buildings through the Leadership in Energy
and Environmental Design (LEED) rating system. The most commonly
accepted and widely used green building standard, LEED awards
credits to structures in six categories: sustainable siting,
water efficiency, energy and atmosphere, materials and
resources, indoor environmental air quality, and innovation in
design. Each structure achieves a LEED certification level
(‘certified,’ ‘silver,’ ‘gold,’ or ‘platinum’) based on how many
points it scores in each of these categories.

LEED standards are currently available or under development
in a number of areas including new commercial construction and
new renovation projects, existing building operations, homes,
and neighborhood development. For further information on the
most recent LEED standards, click
HERE.

Green building is not only good for the environment, but for
the economy as well. Adopting green building policies in
combination with public-private partnerships with labor can lead
to the creation of high-quality jobs for trade unionists such as
Sheet Metal Workers, Electrical Workers and Glaziers. For a list
of the types of innovative, complex technologies that require
high-level skills and training in a variety of trades, click
HERE.

The increased energy efficiency of green buildings pays for
itself in lower heating and electric bills, reduced water and
waste, lower operations and maintenance costs, and enhanced
occupant productivity and health.[ii]
Green buildings can carry high initial costs, however. States
from Massachusetts to Oregon have attempted to offset these
capital costs by proposing legislation offering tax incentives
to individuals and businesses that build green. Each state’s tax
incentive program operates differently, but all offer tax
incentives on a sliding scale that increases tax benefits as the
LEED certification level rises.